The board of directors at Vale (NYSE: VALE) is embroiled in conflict over selecting the company’s next CEO, as reported by Brazilian newspaper O Globo. Consulting firm Russell Reynolds, tasked with aiding the selection process, recently presented a list of 15 potential successors for outgoing CEO Eduardo Bartolomeo.
Internal and External Candidates
The list includes notable executives such as Francisco Gomes Neto (Embraer), Gustavo Werneck (Gerdau), Carlos Piani (Equatorial), Cristiano Teixeira (Klabin), Maurício Bhar (Engie), Antonio Maciel Neto (Caoa), Antonio Filosa (Jeep), Ana Zambelli (SLB), André Juliano (Siemens), and Fabio Venturelli (São Martinho). Additionally, former minister and ex-Petrobras president Pedro Parente, Volkswagen’s US president Pablo Di Si, former Braskem CEO Roberto Simões, and mining industry veterans Ruben Marcos Fernandes (Anglo American) and Marcelo Bastos (BHP and formerly Vale) were also named.
According to O Globo, the board agreed months ago to include two external candidates from this list in the final shortlist, with the third candidate expected to be Vale’s current Chief Financial Officer, Gustavo Pimenta. However, internal conflicts have arisen, with a faction within the board attempting to dissolve it by persuading some directors to resign, which would necessitate electing a new board.
Boardroom Tensions and Resignations
The internal discord has led to a toxic atmosphere, prompting at least two executives on the list to abstain from the vote. Vale, one of the world’s largest iron ore miners, aims to announce its new CEO by early December, as Bartolomeo’s term concludes this year.
Recently, Vale committed to swiftly replacing two independent board members who resigned over the past few months. One of these resignations was attributed to allegations of political influence in the CEO succession plan, further complicating the selection process.
The board’s internal strife over CEO succession highlights the high stakes and significant pressures within Vale. As the company prepares to announce its new leader, the outcome will have substantial implications for its strategic direction and stability. The resolution of this conflict will be crucial in maintaining investor confidence and ensuring a smooth transition in leadership.
Source: Mining.com
